Coast FIRE Calculator

Traditional FIRE (Financial Independence Retire Early) requires saving enough money to live off your investments immediately. You need a large nest egg—typically 25-30 times your annual expenses—before you can quit working.

Coast FIRE, on the other hand, means you've saved enough that, without any additional contributions, your investments will grow to support your retirement at a traditional retirement age. You still need to work to cover your current expenses, but you don't need to save for retirement anymore.

The key difference is flexibility: with Coast FIRE, you can choose a lower-paying job, work fewer hours, or pursue passion projects while your investments continue growing toward your retirement goal.

Coast FIRE and Barista FIRE are similar concepts with a subtle but important difference:

With Coast FIRE, you need to earn enough to cover your current living expenses until traditional retirement age. Your retirement savings are set, but you need full income to cover your lifestyle.

Barista FIRE involves having some investments that partially cover your expenses, allowing you to work part-time instead of full-time. The name comes from the idea that even a barista-level job with benefits could provide the supplemental income needed.

Essentially, Barista FIRE is halfway between Coast FIRE and traditional FIRE—you've saved enough to partially, but not fully, support your current lifestyle.

The safe withdrawal rate (SWR) is a critical assumption in Coast FIRE planning, as it determines how large your final nest egg needs to be.

The traditional SWR is 4%, based on the Trinity Study which found that withdrawing 4% of your initial portfolio in your first year of retirement, and then adjusting that amount for inflation in subsequent years, has a high probability of lasting 30+ years.

For more conservative planning, many financial experts now recommend using 3-3.5%, especially for:

• Longer retirement periods (over 30 years)
• Current high market valuations
• Lower expected future returns

Conversely, if you have flexibility in your retirement spending or additional income sources, a higher SWR might be reasonable.

Our calculator default is 4%, but you can adjust this based on your risk tolerance and specific circumstances.

Inflation is a critical factor in long-term financial planning, as it erodes purchasing power over time. There are two main approaches to account for inflation in Coast FIRE calculations:

1. Use real (inflation-adjusted) returns: Instead of using nominal investment returns (e.g., 9-10% for stocks), use real returns (typically 6-7% for stocks). This approach automatically accounts for inflation in your calculations.

2. Adjust your retirement expenses for future inflation: Estimate what your current expenses would be in future dollars by applying an inflation factor. For example, $40,000 today would be about $72,400 in 30 years with 2% annual inflation.

Our Coast FIRE calculator handles inflation by using real returns, making the results easier to understand in today's dollars. The slider lets you adjust your inflation assumptions based on your outlook.

Yes, Coast FIRE is often more accessible to moderate-income earners than traditional FIRE because:

1. The total amount needed is lower: Since your investments have longer to compound, you need less upfront capital.

2. The timeline is more manageable: You only need to save aggressively for a shorter period before switching to Coast mode.

3. Time matters more than amount: Starting early with consistent investing can be more powerful than larger contributions later.

Key strategies for moderate-income earners include:

• Maximizing tax-advantaged accounts
• Starting as early as possible
• Keeping investment costs low (index funds)
• Maintaining a reasonable but consistent savings rate
• Avoiding lifestyle inflation as income grows

Even saving 15-20% of a moderate income consistently in your 20s and early 30s can put Coast FIRE within reach by your late 30s or early 40s.

Coast FIRE typically involves a long investment horizon, which influences optimal investment strategies:

Asset Allocation: Since your investments need to grow for many years (or decades), a growth-oriented portfolio with higher equity exposure makes sense for most Coast FIRE savers. A common starting point is 80-90% equities and 10-20% bonds, adjusting based on personal risk tolerance.

Investment Vehicles: Low-cost index funds are ideal for Coast FIRE due to their:

• Low expense ratios (preserving more returns)
• Broad diversification (reducing individual stock risk)
• Tax efficiency (minimizing drag on returns)
• Simplicity (requiring minimal maintenance)

Account Types: Maximize tax-advantaged accounts first (401(k), IRA, HSA), then consider taxable accounts for additional savings. For Coast FIRE, understanding how to access retirement funds if needed before age 59½ is important—research Roth conversion ladders and 72(t) distributions.

Rebalancing: Set a schedule to periodically rebalance back to your target allocation, either annually or when allocations drift beyond predetermined thresholds.

Remember that consistency and discipline typically matter more than complex strategies. A simple, low-cost, mostly equity portfolio maintained over time has historically provided the growth needed for Coast FIRE success.

Healthcare costs are one of the most significant and unpredictable expenses in retirement planning. For Coast FIRE, there are two distinct periods to consider:

1. The Coast Period (before traditional retirement):

• If still employed: Employer-sponsored health insurance may cover this period, especially if you shift to part-time work with benefits.
• If self-employed/unemployed: You'll need to budget for marketplace health insurance, which can be substantial. The advanced mode of our calculator allows you to include these costs.

2. Traditional Retirement Period:

• Medicare will be available at age 65, but doesn't cover all expenses.
• Budget for Medicare premiums, supplemental insurance, and out-of-pocket costs.
• Recent estimates suggest a 65-year-old couple might need $300,000+ saved specifically for healthcare costs throughout retirement.

Strategies to manage healthcare uncertainty:

• Add a specific healthcare buffer to your Coast FIRE number (15-20%).
• Consider a Health Savings Account (HSA) as a triple-tax-advantaged way to save specifically for healthcare.
• Research health insurance options thoroughly, including ACA subsidies which are income-based.
• Be flexible about working arrangements that might provide health benefits.

The advanced version of our calculator includes specific inputs for healthcare costs to help you plan more accurately.

Whether to pay off your mortgage before pursuing Coast FIRE is a personal decision that depends on several factors:

Arguments for paying off the mortgage first:

• Reduced expenses: No mortgage payment means lower monthly expenses during your Coast period, possibly allowing you to work less.
• Guaranteed return: Paying off a 4% mortgage is like getting a guaranteed 4% return, which can be attractive in uncertain markets.
• Peace of mind: Being debt-free provides psychological benefits and greater financial security.

Arguments for investing instead:

• Higher expected returns: Long-term stock market returns (7-10%) historically exceed mortgage interest rates (2-4% in recent years).
• Opportunity cost: Money tied up in home equity can't compound in the market.
• Inflation hedge: Fixed-rate mortgages become effectively cheaper over time due to inflation.

A balanced approach might be:

• Refinance to the lowest possible rate
• Invest most extra funds toward Coast FIRE
• Make some additional mortgage payments to have it paid off by your target retirement date

Use the advanced features in our calculator to run both scenarios and see which approach gets you to Coast FIRE faster or provides the lifestyle you prefer.